– The Fannie Debate:Dean Baker says it’d be hard to beat the government-owned Fannie model “if we are interested in a cheap and efficient way to sustain the secondary mortgage market.” But he writes in the Guardian: “If ideological and political considerations prevent us from establishing the most efficient mortgage system, relying on a purely private model is almost certainly better than trying to construct a convoluted hybrid. The potential benefits from this mixed system are fairly modest – a slight reduction in mortgage interest rates. While the risks from not doing it right are large.”

– Central Bank Troubles: As the U.S. central bank confronts deflation risks, the NYT offers another look at Japan and the potential for further quantitative easing there. “But consumer demand in Japan has become so weak — and deflationary expectations are now such the norm — that the economy seems no longer to respond to such monetary tools.”

– Are Celebrities Contrary Indicators?Barry Ritholtz casts doubt on warnings about the economy and markets from Tony Robbins and Mark Cuban, despite supporting some of their views. “I doubt the Cuban/Robbins calls rise to the level of full contrary indicator, but it makes me nervous to be on the same side of the trade of what can be described as ‘scared’ or ‘dumb’ money.”

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